Executive compensation has long been used for rewarding performance and retaining talent. When boards only evaluate pay through a reward-and-retention lens, however, they invite scrutiny from investors, proxy advisors and regulators, particularly around alignment with strategy and long-term value creation.

As attention to pay vs. performance intensifies, executive compensation programs and CD&A disclosures send a message far beyond the boardroom, signaling governance quality, strategic clarity and credibility. Effective committees don’t just approve pay programs, they challenge them. They listen to dissent and apply disciplined oversight, judgment and consistency, continually testing alignment with strategy. To guide this process, here are five questions boards should ask their compensation committees: READ MORE